The world of personal loans is very large and varied, both for the types of products that the various lenders offer to customers, both for the formulas through which to realize the depreciation of the capital provided: a branch far from the secondary world credit is made up of personal loans with a salary or salary allowance, in which the reimbursement is changed, which is not done through the classic payment of postal bills or through a direct transfer by the loan recipient to the financial company. Let’s see together what are the aspects that characterize personal loans and assignment of the fifth , to whom they turn and what are the general conditions of this type of loan.
- Cession of the fifth, what is it
- Characteristics of the assignment of the fifth
- Personal loans with assignment of the fifth: who can request them?
- Loans and assignment of the fifth: which guarantees?
- Advantages and conditions
- Personal loans and assignment of the fifth: differences
- Indexes to be evaluated and expenses?
- Assignment of the fifth to retirees
- Retirement loan: what conditions and who can apply for it
- Employee fifth-party loan
- Sale of the fifth Inpdap
- Some large financial companies that provide excellent offers
Cession of the fifth, what is it
Let’s start by explaining in a simple way what the transfer of the fifth and what differentiates it from the normal personal loan: as the latter, also the sale of the fifth is a fixed rate loan with repayment in constant installments, but to differ in this form of contract is the repayment method of the installments, which
it is not carried out by the applicant but by his employer, or by the social security institution in the case of retired persons, and the related amount for depreciation is withheld directly in the paycheck or by the pension. The employer is therefore the subject appointed to pay the installments in favor of the institute that disbursed the loan.
Characteristics of the assignment of the fifth
We are talking about transfer of the fifth because the amount of the monthly repayment installment can not normally exceed the fifth part of the net salary or social security allowance , therefore 20 percent of the total income considered. In some situations it is possible to exceed the sum paid by a financial institution, arriving at a maximum rate equal to two fifths of salary: in this case it speaks of a proxy loan or a double transfer of the fifth, and to obtain it you must
in addition to the contract for the assignment of the fifth, also sign a contract to delegate the payment, which commits precisely the other fifth of the salary. It is only possible to apply for a proxy loan only if the income is very large .
Personal loans with assignment of the fifth: who can request them?
Who can apply for personal loans with a transfer of the fifth ? This type of financing can be requested by
- public or state employees
- private employees
In the case of employees, the contract must be open-ended and it must also take into account minimum length of service, which varies according to the insurance company that provides the policy linked to the loan. The company in which the applicant usually works must also satisfy certain eligibility criteria, such as for example a minimum number of employees or a share capital above a set minimum limit, and so on, which will have to be evaluated by the institute of credit. For pensioners there are also special conditions, the result of an agreement stipulated by the financial companies with social security institutions, for which
the interest rates applied are generally lower than those present on the average on the market, and a compulsory life insurance policy is envisaged which acts as protection for both the bank and the heirs in the event of the anticipated death of the beneficiary.
It is not possible to apply for loans with assignment of the fifth for self-employed workers.
Loans and assignment of the fifth: which guarantees?
This type of financing based on a secure income does not provide for the applicant to present any collateral, which are somehow replaced as a form of protection from the severance pay accrued by the employee or pension pensioner, who guarantee the financing institution in front of to the risk of loss of work, accident or life risk. It is also expected
the compulsory subscription of a life insurance or employment risk that guarantees, in the event of non-payment, the coverage of the amount still owed.
The cost relating to insurance coverage is retained directly by the financial company or credit institution, which will therefore provide the applicant with an amount net of the aforementioned costs. In order to safeguard the aforementioned guarantees, it is expected that the beneficiary of the loan can not ask for advances on the severance pay for the entire duration of the loan.
Advantages and conditions
One of the main advantages of the sale of the fifth is that, once the eligibility requirements have been met through the economic income conditions, both the applicant and the company he works for in the case of employees, the probability of being granted the loan is very high. These guarantees, combined with an automatic debt repayment plan, make the financing sufficiently secure that a bank can grant them without problems also to protestors, bad payers and, more generally, people with a non-perfect credit history, and who would hardly have access to finance. like personal loans. As for the conditions,
in general, personal loans with the assignment of the fifth provide amortization plans for up to 120 months , or 10 years, or in some cases up to 60 months, ie equal to 5 years. The amounts disbursed obviously vary according to the income of the individual customer, but you can also get quite high sums of money.
Personal loans and assignment of the fifth: differences
As we anticipated, while in a traditional loan the installment is paid by the debtor to the credit institution or financial institution by way of agreed arrangements such as postal bills, bank transfer or debit on the current account, in the transfer of the fifth the installment is deducted directly from the salary or from the pension . Therefore
is the company for which you work or the social security institution to which you are registered, in the case of a transfer of the fifth of the pension , to pay the installment directly to the financial or to the bank.
Another difference concerns the stipulation of a policy , which in personal loans is optional, while it becomes mandatory for loans with transfer of the fifth.
Indexes to be evaluated and expenses?
In front of a loan offer with a transfer of the fifth , the elements to be assessed are 5:
- TAN (Nominal Rate), or the annual interest rate applied on the financed gross capital
- APR (Global Effective Annual Rate), which is the sum of total expenses and charges that represent the total cost of the loan, useful for comparing more offers
- Preliminary costs, a cost item that indicates the coverage of the evaluation and management of the loan request
- Insurance expenses, since the transfer of the fifth salary by law is linked by insurance coverage to guarantee the life and use risk of the customer, pursuant to Article 54 of Presidential Decree 180/1950
- Banking commissions, ie bank administrative costs that are part of the cost of the loan
Assignment of the fifth to retirees
The assignment of the fifth Inps is aimed only at pensioners, who can stipulate a loan at competitive rates with the partner banks that can be paid in a period of no more than ten years, giving up a portion of the pension up to a fifth of his total value. In this case
it is the INPS that pays the repayment installments of the loan, withholding them from the pension. After evaluating the most convenient estimate, the pensioner must contact his social security institution in order to obtain the declaration of transferable quota , a document certifying the transferability notice in which the INPS, after having verified the conditions to protect the pensioner, indicates the maximum amount of the loan installment. This document must then be presented to the credit institution before entering into the loan agreement.
Retirement loan: what conditions and who can apply for it
In the loan with retirees, the duration of the loan can vary between 24 months up to a maximum of 120 months, with a fixed rate for the entire duration of the amortization. The only limitations are related to the expiry of the loan and the protection of the minimum amount of the remaining pension once the installment is subtracted, a limit established by law and set each year by the State, and that generally must not be less than 500 euros. The personal loan for retired persons can be requested by persons between the ages of 72 and 80, and the maximum age for requesting the transfer of the fifth for pensioners generally does not exceed 85 years, this means that the last installment must expire before the age of 85.
Only old-age, old-age and survivors’ pensions are taken into account, while invalidity, disability, social allowance pensions, those with more than one owner and with a net income of less than € 500 can not be financed with the assignment of the fifth. The signing of a mandatory life insurance policy against the risk of anticipated death is also expected.
Employee fifth-party loan
In loan employee loans to employees a guarantee that protects the bank grants loan is represented by the employee severance indemnities, more commonly known as liquidation, or the amount of money that it is up to the employee at the end of his employment relationship. Generally, this sum is equal to approximately one month’s salary per year, even if the calculation is made precisely by dividing the annual salary by 13.5. In the case of loans with the transfer of the fifth, the TFR set aside
it is made available to the issuing bank as a guarantee for the loan. Employees of private companies are obliged to sign a declaration that binds the credit institution to dispose of the present and future TFR, which can be withdrawn by the bank in case of loss of the beneficiary’s job, up to the coverage of the residual debt. Public and state employees are not subject to this restriction, as their TFR is managed by the Inpdap, and therefore does not represent a guarantee for the bank that provides the loan.
Sale of the fifth Inpdap
Finally, let’s see what the fifth Inpdap assignment consists of : this institution is the National Institute of Welfare and Assistance for Public Administration Employees, and is authorized to grant loans to all public administration employees who need liquidity, paying for them the installment of a personal loan through the assignment of the fifth.
To access the assignment of the fifth of the Inpdap salary, the following requirements are required:
- Be employed by a public administration with a permanent contract
- Have attained at least 4 years of service at the administration itself
- Do not have any other payroll deductions that add up to two fifths of your salary
In order to obtain the assignment of the fifth Inpdap, a specific request must be submitted, filled out by means of the form issued by the social security institution for public administration employees. The application must be drawn up in four copies to be submitted to the administration for which you are employed, and must be attached to the documentation certifying the state of necessity and any expenditure depending on the reason provided for in the regulation. In addition, a medical certificate of healthy and robust physical constitution is also provided that is issued by the ASL or by a doctor appointed by the Administration on which the applicant depends.
It is not possible to replicate a transfer in progress if at least two years have not elapsed since the start of a five-year assignment, or four years from the beginning of a ten-year sale. On the other hand, early repayment is granted at any time through the payment of the residual debt. Next to the sale of the fifth is the signing of an insurance policy , which protects the lender and the applicant in the event of dismissal and subsequent loss of employment.
Some large financial companies that provide excellent offers
Let’s see now to conclude some examples of financial loans that grant loans by the fifth : there are many financing institutions in the Italian credit market that offer this opportunity, we limit ourselves to mention only some of the most famous financial indicative. Let’s start with Findomestic , whose sale of the fifth periodically offers discounts and promotions: basic expenditure is not foreseen for commissions for education, intermediation and practical management, or stamp duty for periodic communications.
With Agos, as stated on the official page of the site , it is possible to request even high amounts, repayable through amortization plans up to 120 months. Furthermore, an advance on the amount of the loan can be requested, and the possibility of obtaining the requested capital is also envisaged in the case of other existing loans, and in the presence of ascertained, previous difficulties in accessing the loan.
We close our brief overview with Compass, in whose page of the official site you can read between the conditions of access to the funding between the ages of 18 and 63, the possibility to request also the delegation of payment, and obtain repayable sum with installment up to two-fifths of the salary. For pensioners the possibility of requesting the assignment of the fifth is up to more than 70 years, maximum age of 85 years on maturity.